As Bitcoin continues its walk to become “conventional” and in current use, it turns out that its increasing price rates are not the only thing that suffers a sudden increase. There is new research to note that popular cryptography now consumes more electricity than more than 20 countries in Europe.
What is Bitcoin?
We can refer in generic terms that it is a virtual currency created in 2009, based on the peer-to-peer (P2P) system. P2P is a system that does not provide for centralized authority to control currency or transactions, as with other currencies (for example, the INR. is controlled by the RBI). Instead, money creation and transfers are based on an open-source network in encrypted protocols that form the basis of Bitcoin’s security and freedom, making transactions instantaneous among users. The invention of a mysterious computer guru, who referred to his pseudonym Satoshi Nakamoto, this coin is created by means of a very complex mathematical formula. But to deepen your knowledge, see the more detailed information below:-
But does mining waste a lot of energy?
Well, this is the point that is on the agenda because more and more people are “mining” this cryptocurrency. Such is the relevance that researchers of the British power price comparison platform, Power Compare, have found that the total volume of electricity needed for Bitcoin’s mining – such as the computational process that keeps transactions in the chain of moving blocks – now equals more consumption than 159 individual countries. Among others, the list includes Ireland, Croatia, Serbia, Slovakia and Iceland.
Curiously, only three countries across the African continent currently consume more electricity than the Bitcoins mining process: South Africa, Egypt and Algeria. As for the rest of the world, Power Compare mentions Ecuador, Puerto Rico, North Korea, among many other countries. In the map below there is a clear identification of the current scenario.
Despite the fact that many financial experts say that Bitcoin is not a currency, in reality, this “Internet currency” is already of great relevance in the world. Some days ago Bitcoin surpassed for the first time the eight thousand dollars. Of course, this variation creates distrust, but with each passing month, it has attracted more users. According to Power Compare, Bitcoin mining saw a nearly 30% increase in consumption in just the last 30 days. Curiously, the survey points out that, assuming Bitcoin’s electricity needs continue to grow at that rate, global mining consumption may be higher than the entire UK electricity supply in October next year.
But how much does all this energy cost?
Of course, it is legitimate to realize the cash value that this consumption costs. Researchers estimate Bitcoin’s annual mining electricity costs currently stand at $1.5 billion. One thing to keep in mind is that the estimate assumes that mining occurs in places with low electricity rates. If it is not, then the number may be even greater in reality. So, what do you think about this? Simply share your views and thoughts in the comment section below.
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